India’s ONGC Videsh (OVL) has signed a memorandum of understanding (MOU) with Vietnam’s state-owned oil company, Petrovietnam, for exploration of five oil blocks in the South China Sea, as part of plans to acquire oil and gas assets in the Southeast Asian country.

OVL will make a proposal for Petrovietnam only after assessing the techno-commercial viability of these oil blocks.

Sudhir Vasudeva, chairman of OVL, said that the cooperation aims at a long term strategic partnership with Vietnam. The cooperation is expected to help achieve medium to long terms goals set for OVL and energy security of the BRIC country.

OVL marked its presence in Vietnam’s E&P sector after procuring a license to explore Block 6.1 in 1998. Currently, OVL holds 45 per cent non-operating participating interest in the block which comprises the Lan Tay and Lan Do fields.

The overseas arm of ONGC has also invested more than USD 50m to acquire a 100 per cent stake in the exploration Block-128.